Dropping comprehensive coverage?

**Denvergirlie** · 03-31-2009, 12:46 PM

I have a 2000 Ford F150 pick up truck. It's paid for, and maybe $5K in value.

I "technically" have the money in my EF to replace it should it get totalled, but at the same time I don't want to spend that money.

I currently have full coverage on the truck with a $500 deductable.

I've thought about increasing that deductable to $1K, but have yet to make that move either.

I'm not really certain what the monthly cost savings would be for both options... raising deductable or removing comprehensive all together.

However, I can imagine that the cost savings will be take up to several years to come out ahead if I would need to make a claim, should I keep things the same.

So how have you handled this on cars that are paid for? Do you keep a high deductable? Do you drop comprehensive all together?

I suppose it all goes back to each individuals risk tolerants, and I am having a hard time lowering mine. However, at the same time I'm trying to see how I can lower some bills. In all honesty, car insurance is really the only area I haven't lowered to the bare bones like the rest of my budget.

A bit of a backstory:
My job has had some "danger" of loss for a few years now, nothing really any different this month that wasn't the same consideration a year or two years ago. I've calculated unemployment benefits should I be laid off, and I need to lower my expenses $90 a month to be able to pay everything on a monthly basis while on UI. I'm not going to make that $90 a month from insurance, but every dollar will help me take a little as possible from my EF. Of course all bills would need to be paid from EF if I was fired for some reason, so lowering bills would be even more important in this case.

Granted, knock on wood, I hope that nothing happens as nothing has happened for the past 3 years, but I'm also trying to plan ahead should something occur. That whole having a back up plan A, B, C thing.
Needless to say I'm not adverse to saving a few extra bucks a month now vs. just it being a consideration for the future.

Perhaps this should be a few forums down in insurance area, but putting it in automotive as replacement costs freak me out more than insurance payments.

TIA

**Debbie-cat** · 03-31-2009, 12:49 PM

I am trying to decide the same thing you are. Right now I have full coverage but no longer need it as my car is paid in full but I am leary about dropping it to comprehensive coverage. It will be interesting to see what others have to say so maybe it will help me make up my mind as well!

**Momto2Boyz** · 03-31-2009, 01:07 PM

Call your insurance company and find out what their value would be if it was totalled. Tell them what you are doing, and try to see if it is worth the coverage.

We were very surprised to find out that our truck that has a blue book value of around $6K, would only be worth about $1500 to the insurance company if we totalled it. Their values are completely different from the book values. They give you far less than the replacement value. We of course dropped the insurance which lowered our bill about $60 a month and to us was worth it.

Never hurts to call and ask and get the facts!

**elphie** · 03-31-2009, 01:19 PM

Originally Posted by Momto2Boyz

Call your insurance company and find out what their value would be if it was totalled. Tell them what you are doing, and try to see if it is worth the coverage.

We were very surprised to find out that our truck that has a blue book value of around $6K, would only be worth about $1500 to the insurance company if we totalled it. Their values are completely different from the book values. They give you far less than the replacement value. We of course dropped the insurance which lowered our bill about $60 a month and to us was worth it.

Never hurts to call and ask and get the facts!

I was just about to post a similar experience with our truck.

**Denvergirlie** · 03-31-2009, 01:34 PM

Originally Posted by Momto2Boyz

Call your insurance company and find out what their value would be if it was totalled. Tell them what you are doing, and try to see if it is worth the coverage.

We were very surprised to find out that our truck that has a blue book value of around $6K, would only be worth about $1500 to the insurance company if we totalled it.

Is this a new thing?

I had my car totalled back in 2004 (no fault of my own) and after paying my deductable, I still got the the full value to replace the car.

Their first offer was a bit low, but I went to the marketplace and found several cars with like mileage, condition and features and showed them what the actual replacement cost was.

They took the three and averaged them out and that's what I got back from insurance.

I will give them a call I suppose and run some numbers but am very surprised that you all got so little in the settlement. All of my car insurance policies have always been based on replacement value for like. But sounds like I might need to clairify this again with them.

**jmd5294** · 03-31-2009, 01:47 PM

When we had the money in our savings account to cover the deductibles if everything went bad at once (both cars and homeowners), I raised the deductible on all our insurances. It ended up savings us around $400/year.

Of course, when DH's truck was stolen and damaged last year, I realized that I only raised whatever deductible that was to $250. I will be calling to raise that one (now that he remembers to lock his doors at night and bring his keys into the house!!)

Most of our deductibles are at 1,000.

**Spirit Deer** · 03-31-2009, 01:52 PM

We've found that dropping comp wouldn't lower the bill enough to be worthwhile, considering what it costs to replace things like windows.

The biggest share of our premiums goes towards liability, and since Minnesota is a no-fault state we're required to carry that.

We drop everything BUT comp on the vehicles we don't drive in winter. The premiums aren't very much and then we're protected in case of a tree falling on the vehicles and other weather-related incidents. I don't think a deductible applies to our comp coverage either.

You may want to think about what sorts of things will not be covered, should you drop the comp, and whether or not you want to self-insure for those kinds of losses. For example, if your windshield gets chipped and starts to crack, do you want to pay to have a new one installed and what will that cost you?

You should note that insurance varies from state to state and from company to company within the same state, so your best bet is to talk to your own carrier. It's really not possible to get a good answer on a forum like this.

**kellieetter** · 03-31-2009, 02:09 PM

I am going through the same thing!! I am looking for a way to drop cost but am very worried about lowering anything. I did raise all my deducts to a $1000.00. My car is paid in full so I am not sure if I want to drop it either.

**kellieetter** · 03-31-2009, 02:12 PM

So I just check how much my comprehensive coverage is costing me...$40.00 not worth it to drop our big ticket item is the bodily injury/property damage liability, we have 50,000/100,000. I have thought about lower this but heaven forbid something happen and my coverage not be enough and I get sued. What to do?!